Reviewing Your Homeowners Insurance Policy

Think about annual home-maintenance items and things like roofs, gutters, and checking the weather stripping & caulking around your windows and doors probably come to mind.  According to a recent CNN Money article, reviewing your Homeowners Insurance Policy should also be included on that list. Often times people are not aware of the details within their policy, but knowing your homeowners insurance policy can be a way to save money, as well as grief, if a disaster should fall upon your home.  Here are some areas to be aware of…

•Know how much coverage you actually need. Your premium should not be based on the appraised value of your home because that includes land value, an unnecessary expense which can add a considerable amount to your home’s value.  Your local homebuilders association is a resource that offers the square-footage replacement cost in your area, use this tool to find out how much coverage you truly need.

•Don’t wait until you need to file a claim to examine what is covered. You’ll want to know not only what is covered on your policy, but also what is not. If you live in a high risk area for natural disasters look into supplemental coverage as standard policies usually do not cover these.

•Check your deductible. Many insurance companies are changing deductibles from dollar amounts to percentages based on the value of the entire home, not just the costs of damages you may encounter. You will want to be aware of what your deductible is – you may find the percentage makes the deductible unreasonable and it may be time to shop around.

•What is your premium? If it rose more than 5% in the last year you will want to contact your insurer and find out why. Where there changes to your risk profile? Knowing this information will help you if you need to shop around, which you should also do annually.

•Check with your insurer to explore ways to lower your premium, perhaps by increasing your deductible, bundling home and auto policies, or installing security systems

•Prepare. No one wants to imagine that a disaster could hit their home, but the fact is no one is completely  immune to them. Take pictures or videos, save receipts, take a home inventory, and store all that information in a fire save box with your insurance policy.

For any and all of your questions about the Richmond Hill and Savannah, Ga areas, as well as real estate questions and needs, please don’t hesitate to contact me, Teresa Cowart, as I am always happy to help!  You can also connect with me on my Facebook Pagefor area info and events, things to do, real estate news, home ownership tips, and so much more!

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Source:
money.cnn.com